Buy America Regulations May Raise Transit Infrastructure Costs

Patrick Hefflinger

Today the American Action Forum (@AAF) released new research examining the implications of Buy America regulations on U.S.-based infrastructure projects, specifically metro system procurements. AAF finds that Buy America regulations raise the costs of subsidized infrastructure projects by preventing the U.S. from utilizing established global supply chains. According to the research, U.S. metro cars cost 34 percent more than their foreign counterparts. Furthermore, nations that are less restrictive on trade also enjoy lower procurement costs.